- The EU will enforce a €10,000 cash payment limit across member states and require ID checks for cash deals above €3,000.
- Crypto firms must apply enhanced KYC checks for certain transactions of €1,000 or more and ban anonymous accounts.
- Self-custody wallet transfers remain exempt, while AMLA will coordinate AML enforcement across the European Union.
The European Union has approved a major anti-money laundering framework that will take effect in July 2027, introducing a €10,000 cash payment limit across member states and stricter compliance rules for crypto businesses. Under Regulation (EU) 2024/1624, regulators will expand oversight of financial activity, strengthen transparency requirements, and impose new customer verification standards on certain cryptocurrency transactions.
New Cash Rules Apply Across Member States
One of the regulation’s biggest changes targets large cash transactions. Under the new framework, businesses will no longer accept cash payments above €10,000 for goods and services. While several countries already enforce similar restrictions, the regulation creates a common rule across the European Union.
However, member states may introduce lower thresholds if they choose. In addition, businesses must verify customer identities for cash transactions worth €3,000 or more. Private transfers between individuals remain outside the scope of the rule. Likewise, bank deposits and payments processed through regulated financial institutions are not affected.
Alongside cash restrictions, the regulation expands anti-money laundering obligations to additional sectors. These include luxury goods, football clubs, crowdfunding platforms, and investment migration activities.
Crypto Firms Face Stricter Compliance Duties
The regulation also introduces new obligations for Crypto-Asset Service Providers operating within the EU. Under the rules, certain occasional crypto transactions valued at €1,000 or more will require enhanced Know Your Customer checks. Exchanges and other regulated crypto firms must collect additional customer information when those thresholds apply.
At the same time, the framework places new limits on anonymous crypto services. Regulated providers will not be allowed to offer anonymous accounts or custodial wallets where ownership cannot be identified.
The regulation also restricts services connected to anonymity-enhancing cryptocurrencies. EU authorities said such assets can complicate efforts to monitor suspicious financial activity.
AMLA To Coordinate Enforcement Efforts
While regulated platforms face new requirements, self-custody users receive different treatment.
According to the regulation, direct wallet-to-wallet transfers using self-custody or hardware wallets remain outside the €1,000 verification threshold. The rules instead focus on regulated intermediaries such as exchanges and custodians.
To oversee implementation, the European Union has established the Anti-Money Laundering Authority, known as AMLA. Based in Frankfurt, Germany, AMLA will supervise major cross-border institutions and coordinate anti-money laundering enforcement throughout the bloc.
